CarFinance.com Auto Refinance Loans: 2019 Review

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

3.5NerdWallet rating

Good for: Consumers with poor credit who want fast preapproval to refinance an existing car loan

CarFinance.com is a direct lender offering auto loan refinancing. The lender provides fast preapproval decisions and refinances loans for those who might not get refinancing from other sources.

CarFinance.com is a good fit for those who:

Want a fast decision: You can get preapproved for a refinance loan in less than 30 minutes during business hours.

Have bad credit, with scores as low as 525: But finding a low interest rate can be a challenge for borrowers with bad credit. Shop around for the best rate.

Are carrying a lot of debt: CarFinance.com will refinance borrowers who are already carrying a debt load up to half their monthly income.

CarFinance.com at a glance

Refinance loans

APR*

7.99% - 21.99%

Loan amounts

$7,500 - $45,000

Min requirements

Credit score: 525
Income: None

Hard credit check with application?

Yes

Availability

43 states and Washington, D.C.

*Annual percentage rate is used to evaluate the true cost of borrowing money and includes the interest rate.

CarFinance.com review details

CarFinance.com, managed by subprime lender Flagship Credit Acceptance, can help borrowers with high debt and bad to fair credit refinance their car loan.

Applying to refinance your car loan from CarFinance.com is fairly straightforward. You can fill out the application online and receive preapproval quickly. You might be asked to provide additional documents, which can be sent electronically. Note that CarFinance.com requires a hard credit pull, which slightly lowers your credit score. This means its best for borrowers who are serious about refinancing their car loan, not just shopping rates.

When evaluating refinance applications, CarFinance.com says the most important factors are your payment history on your current auto loan and other debt and the ratio of your total debt to income (including the potential debt from a CarFinance.com loan).

Car loan rates

As with all auto financing, your interest rate on a refinance loan from CarFinance.com will depend on your credit, with lower scores resulting in higher rates. Lenders set their own requirements, but credit scores are generally categorized as follows:

300-629: Bad credit.

630-689: Fair credit, also called “average credit.”

690-719: Good credit.

720 and up: Excellent credit.

CarFinance.com generally lends to consumers with credit scores between 525 to 650, signaling its focus on borrowers with bad credit. Its loans have minimum APRs of 7.99% and could be as high as 21.99% for a refinance loan. The higher your rate, the more you’ll pay in interest over the life of the loan.

If you know your credit score, you can get an idea of the interest rate you might qualify for. And remember, it’s especially important to compare offers so you can find the best possible rate if you have bad credit.

Not available in Hawaii, Massachusetts, Mississippi, Nevada, North Dakota or Oregon.

How CarFinance.com compares

CarFinance.com refinances consumers who often have high debt and poor credit and might not get approved by other lenders. It also has no stated minimum income requirement, while other, similar lenders require applicants to make at least $1,100 per month.

The tradeoff to these relaxed requirements is that CarFinance.com has a higher minimum interest rate than other lenders. The table below shows how CarFinance.com’s refinance requirements stack up to those of other lenders.

More from CarFinance.com

CarFinance.com offers additional services and features to help borrowers manage their car loans. The lender offers GAP Protection, also known as guaranteed asset protection insurance, which covers the difference between your loan balance and your car’s value — what your insurance company pays out on a total loss claim. CarFinance.com also partners with insurance company Infinity to provide auto insurance.

The lender’s monthly payment calculator can help you understand how refinancing could improve your current car loan and would fit into your budget. The site also features a blog, customer resource center and robust FAQ section.

Shopping for an auto loan

Fees and penalties: Most lenders don’t charge an application fee to apply for a purchase or refinance loan. Once you receive the loan, late payment fees will vary by lender.

Rate shopping: Make all applications within a short time to minimize the impact on your credit score. Credit bureaus typically group multiple car-loan requests and treat them as a single inquiry if done within a short window, generally 14, 30 or 45 days. But it’s also smart to check your report afterward to confirm this is the case.

Run the numbers: Just because you can qualify for a loan doesn’t mean you have to take it if it stretches your budget. Use our auto loan calculator to see how offers compare and what best fits in your car budget. When refinancing, NerdWallet doesn’t recommend extending your loan term since you’ll end up paying more in interest and could wind up owing more than the car is worth.

It’s smart to comparison shop when you want to get a loan to purchase or refinance your car. That can, however, lead to being contacted by dealers and lenders.

Many lenders and loan marketplaces share your information with other lenders and partners to get you the best deal. This means you could get emails and phone calls from lenders and possibly even car dealers. Be sure to read the privacy information on a lender’s website.

To avoid unwanted calls and emails, consider creating a new email account and get a Google Voice phone number that you can check separately. Both options are free and can be used for other shopping needs.

When you apply for a car loan the documents and information requested may vary by lender, but you’ll generally need the following:

Vehicle information, including the year, make, model and current mileage of the car; the vehicle identification number; an accurate description of all the vehicle’s trim level, features and options; proof of vehicle registration and insurance; and a copy of your driver’s license.

Personal and financial information, including proof of income, employment information, banking and credit history, Social Security number and proof of residence.

When refinancing a car loan or trading in a car with a loan on it, you’ll also need your current loan information, including the name of the lending institution and account number of your current car loan; and your remaining loan term and balance.

Auto Loans Ratings METHODOLOGY

NerdWallet’s auto loans ratings reward lenders offering the most transparency and consumer-friendly features. Ratings are based on weighted averages of several categories, including flexibility of loan options, clarity of borrower requirements, accessibility, speed of funding and fees. Using our editorial discretion, we also consider consumer reviews and complaints. These ratings are a guide, but we encourage you to shop around to find the lowest interest rate you can qualify for. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Compare auto insurance rates

We want to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and safe by following our posting guidelines, and avoid disclosing personal or sensitive information such as bank account or phone numbers. Any comments posted under NerdWallet's official account are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.